In January 2009, Tom Sosa, the purchasing manager, received a telephone call from their Columbus, Indiana, diesel engine supplier informing him that effective June they were no longer producing the D-342 diesel engines at the Columbus plant. The D-342 engine sales were decreasing and would no longer be in their product line. Tom was in shock. He was now forced to deal with the sole supplier of the D-342 located in Portland, Oregon. The most recent price schedule submitted by the Oregon engine supplier is given below:
| Units per Order | Unit Price |
| Less than or equal to 100 | $ 4,800 |
| Between 100 and 200 | 4,700 |
| Greater than 200 | 4,550 |
The prices had been basically the same as the Columbus supplier except that they are F.O.B. Portland. The traffic department informed Tom that the transportation cost per hundredweight is $10 for carload lots of 50,000 pounds. The less than carload rate is $15 per hundredweight. The replenishment cycle normally takes one week.
BACKGROUND
Tom Sosa, the supply manager for MARS, Inc. was contemplating several significant changes in the D-342 diesel engine market. Mr. Sosa was concerned because in its production of the 98-D loader, MARS used 10 diesel engines each working day of the month. (MARS operated on a 20-day-per-month schedule.) Each engine weighs 500 pounds. Engine orders are currently placed every Monday morning. For the past 10 years, the D-342 engines had been produced in only two locations in the United States, one in Columbus, Indiana, and the other in Portland, Oregon. Mr. Sosa felt fortunate that the Columbus producer was located approximately 30 miles from his facility. The Columbus supplier offered just-in-time delivery service at no charge to MARS.
MARS implemented lean manufacturing in 2002. The kanban-controlled JIT production system was implemented based on the premise of minimizing work-in-process inventories (waste) by reducing lot sizes in order to increase production efficiency and product quality.
ACTION TAKEN BY TOM
Mr. Sosa compiled cost and warehouse capacity data on the D-342 engine from the accounting department. See Table C17.1.
Mr. Sosa wonders what effects these new developments will have on his cost structure.
Assignment Questions
1. What were MARS’s total costs per year prior to the new price structure when the diesel engine price was $4,800? Was MARS using the EOQ method?
TABLE C17.1
Cost and Warehouse Capacity
| Cost of unloading engines into warehouse | $0.25 (per 100/wt) |
| Order processing cost per requisition | $100 |
| Warehouse capacity | 200 units |
| Outside warehouse costs | $39 per year per unit* |
| Expediting cost per requisition | $50 |
| Inventory carrying cost | 38% |
2. With volume discounts and warehouse constraints, what is the best ordering quantity?
In: Operations Management
“It's company policy”
Let's look at a real case where one party used positional bargaining and the other principled negotiation. Tom, one of our colleagues, had his parked car totally destroyed by a dump truck. The car was covered by insurance, but the exact amount Tom could recover remained for him to work out with the insurance adjuster.
INSURANCE ADJUSTER
A=We have studied your case and we have decided the policy applies. That means you're entitled to a settlement of $3,300.
B=I see. How did you reach that figure?
A=That's how much we decided the car was worth.
B=I understand, but what standard did you use to determine that amount? Do you know where I can buy a comparable car for that much?
A=How much are you asking for?
B=Whatever I'm entitled to under the policy. I found a secondhand car just about like it for $3,850. Adding the sales and excise tax, it would come to about $4,000.
A=4,000! That's too much!
B=I'm not asking for $4,000 or $3,000 or $5,000, but for fair compensation. Do you agree that it's only fair I get enough to replace the car?
A=OK, I'll offer you $3,500 That's the highest I can go. Company policy.
B=How does the company figure that?
A=Look, $3,500 is all you'll get. Take it or leave it.
B=$3,500 may be fair. I don't know. I certainly understand your position if you're bound by company policy. But unless you can state objectively why that amount is what I'm entitled to, I think I'll do better in court. Why don't we study the matter and talk again? Is Wednesday at eleven a good time to talk?
A=OK, Mr. Griffith, I've got an ad here in today's paper offering a '89 Taurus for $6,800.
B=I see. What does it say about the mileage?
A=49,000. Why?
B=Because mine only had 25,000 miles. How many dollars does that increase the worth in your book?
A=Let me see ... $450.
B=Assuming the $6,800 as one possible base, that brings the figure to $7,250. Does the ad say anything about a radio?
A=NO.
B=HOW much extra for that in your book?
A=$125.
B=How much for air conditioning?
A half-hour later Tom walked out with a check for $8,024.
1-In the case of "It's company policy" , how did Tom apply the principle of "suggesting a joint search for objective criteria and open to reason" in his negotiation with the insurance adjuster?
2-In the case of "It's company policy" , how did Tom apply the principle of "using fair standards" in his negotiation with the insurance adjuster?
3-In the case of "It's company policy" , how did Tom apply the principle of "not yielding to pressure" in his negotiation with the insurance adjuster?
In: Operations Management
In: Accounting
Choose the proper statistical technique to use for each scenario from the list below.
A. One sample test for a mean
B. One sample test for a proportion
C. Two sample test for means- independent
D. Two sample test for means – paired
E. Two sample test for proportions
F. Chi square test of independence
G. Chi square test for homogeneity of proportions
H. One Way Analysis of Variance
I. Correlation
J. Simple regression
K. Multiple regression
L. Time series forecasting.
1. What is the statistical technique if you want to predict stock ownership (number of shares) based upon annual income?
2. A study has been carried out to determine if there is a difference in the average dollar contributions made by clerical workers at three different firms.
3. AAA wants to determine EPA mileage ratings of new cars based upon their weight and whether they are standard or automatic transmission.
4. According to the ICR Research Group, 63% of Americans in the 18-34 age group say they are comfortable filing income tax returns electronically, compared to just 49% of those 55-64. They sampled 200 people from each age group to determine if the younger set were more comfortable with electronic filing than those in the older group.
5. It has been reported that the average visitor from Japan spent $1953 during a trip to the United States, while the average for a visitor from the United Kingdom was $1738. Does the visitor from the United Kingdom spend significantly higher than a visitor from Japan?
6. One of the measures of the effectiveness of a stimulus is how much the viewers pulse rate increases on exposure to it. In testing a lively music theme for its television commercials, an advertising agency shows ads with the new music to 25 viewers and their mean pulse rate is 20.5 beats per minute while the mean pulse rate per minute for another sample of 25 viewers seeing the same ads with the old music was 16.9 beats per minute. Is the new music theme better?
7. A trucking firm is considering the installation of a new, low restriction engine air filter for its long-haul trucks, but doesn’t want to make the switch unless the new filter can be shown to improve the fuel economy (miles per gallon) of these vehicles. A test is set up so that each of 10 trucks makes the same run twice- once with the old filtration system and once with the new version.
8. A movie complex has a sellout for three movies rated G, PG, and R that they show simultaneously on a Friday evening. A sample of patrons from each movie is observed to determine if they purchase snacks or do not. Could the percentage buying snacks be the same for each movie?
In: Statistics and Probability
Allie’s Apple Orchard (AAO) is a privately owned company that specializes in pick-your own apples, strawberries and raspberries. The Farm is dedicated to modern, environmentally friendly growing practices. They are located in Port Perry, Ontario. AAO incorporated 15 years ago by the Pierce family. The company has a December 31 year-end. In a recent meeting with the owner, Allison Pierce, she indicated that the family has been provided an opportunity to purchase an additional 100 acres of land at a farm a few miles away. The additional land will allow AAO to expand their operations and grow additional varieties of apple trees. AAO has approached the bank for additional financing. The bank has requested that AAO provide GAAP compliant financial statements. The Pierce family does not really know much about GAAP, and what their options are, and has asked that you provide some context. The bank has stated that in order to qualify for the loan, AAO must maintain a total debt to equity ratio that does not exceed 2:1. The draft financial statement projected that debt was $560,000, and equity was $428,000. It is now January 15, 2020 and you have been hired to assist AAO with the finalization of their year-end GAAP compliant financial statements. In your meeting with Allison, the following issues were identified:
- In 2019, AAO made a series of updates to their signs around the farm. This included re-painting and touching up some of the signs that were starting to fade and look dull. The total cost of the repainting was $15,000, including the employee wages and materials. AAO generally re-paints 1- 2 years. AAO also purchased 3 new large billboard type signs to better help draw in customers off the highway, and to help customers navigate between the various crops. The total cost of the 3 new signs were $80,000. The total $95,000 has been capitalized.
- In October, AAO had a few leaks and had to have an emergency replacement of the shingles on the barn’s roof. They paid $125,000 for the repairs and expensed it during the year.
- Finally, in September 2019, an ex-employee sued AAO in the amount of $80,000 for wrongful dismissal. Correspondence between the AAO legal team and the plaintiffs’ counsel indicated that a settlement of $35,000 was accepted by the employee in late December. AAO has not yet paid this amount.
- AAO accounts for its capital assets on an historical cost basis. They have not recorded depreciation on a few specific pieces of equipment. The assets in question include: Land costing $1.5 million, and 5 tractors costing $250,000 each. The Pierces have always felt that depreciation does not represent the true economic value of the equipment, and skews the overall income. The estimated useful life of the tractors is about 15 years.
Prepare your report to Allison Pierce that addresses the contentious accounting issues. Provide support for your recommendations.
In: Accounting
Problem One:
On March 1, 2019, Mark Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed at a cost of $6,400; the salvaged materials were sold for $1,200. Additional expenditures before construction began included $800 attorney’s fee for work concerning the land purchase, $3,800 real estate broker’s fee, $5,800 architect’s fee, and $11,000 to put in driveways and a parking lot.
Instructions
Problem Two:
Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2018, at a cost of $188,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000.
Instructions
Year Depreciation Expense Accumulated Depreciation Book Value
2018
2019
2020
2021
Problem Three:
Kinder Company purchased a new machine on October 1, 2018, at a cost of $145,000. The company estimated that the machine will have a salvage value of $25,000.The machine is expected to be used for 20,000 working hours during its 5-year life.
Instructions
Compute the depreciation expense under the following methods for the year indicated.
|
Date |
Account |
DR |
CR |
Problem Four:
On January 1, 2019, Jaime Inc. invested $900,000 in a mine estimated to have 1,200,000 tons of ore of uniform grade. During the 2019, 100,000 tons of ore were mined and sold.
Instructions
|
Date |
Account |
DR |
CR |
Problem Five:
The following are selected 2019 transactions of Penaflok Corporation.
Jan. 1 Purchased a small company and recorded goodwill of $200,000. Its useful life is indefinite.
May 1 Purchased for $120,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.
Instructions
Prepare necessary adjusting entries at December 31 to record amortization required by the events above.
|
Date |
Account |
DR |
CR |
In: Accounting
CASE - I
Ford Pinto : In the class, we learned the reasons behind disastrous engineering failures, Ford Pinto case is one of the disastrous in the list.
Analyze the ford pinto case, search the case on the websites and answer the following.
Answer the following questions in detail.
Questions:
1. a) List down engineering failure and
causes?
b) List down ethical issues?
2. What are the precaution has been taken place
after the incidents?
CASE-II
Lucy is a young teacher at a popular school with an incredibly busy
and stressful schedule, who needs to organize what little free time
she has more efficiently. Because of the hectic schedule she has
downloaded a new Mobile app called 'daily-scheduler' onto her
iPhone; this mobile app merges information from Lucy’s to-do-list,
information on her purchasing habits from retail stores she shops
at, and GPS software to produce the most efficient map and
directions for running ‘daily-scheduler’ on her days off. Based on
what it knows about what she needs to purchase and her general
shopping habits, it tells Lucy what locations of her favorite
stores to visit on a given day, in what order and by what routes –
this way she can get her ‘daily-scheduler’ done in the least amount
of time, traveling the least number of miles. To accomplish this,
the mobile app aggregates information not only about where she
lives and shops, but also tracks what she typically buys in each
store, how much she buys, what she typically pays for each item.
This collected data is not stored on Lucy’s phone, but on a
separate server that the app links to when it needs to create a
shopping map. The mobile app encourages users to log in social
media channel via Facebook, as the developers have made a deal with
Facebook to sell this data to third-party advertisers, for the
purpose of targeting Facebook ads to Lucy and her friends.
Answer the following questions in detail.
Questions:
1. In what ways could Lucy potentially be harmed by this mobile
app, depending on how it is designed and how her shopping data is
handled and used? Identify a few harmful scenarios you can think
of, and the types of harm she could suffer in each.
2. Which if any of these harms could result from ethical failings on the part of the people who developed 'daily-scheduler'? How, specifically?
3. What actions could the people behind 'daily-scheduler' take to prevent these harms ? Are they ethically obligated to prevent them? Why or why not? Explain your answer.
PLEASE NOTE:
* All the students MUST write the answers with their own. Do not
copy
websites.
*
In: Electrical Engineering
1. The altitude of a triangle is increasing at a rate of 33 centimeters/minute while the area of the triangle is increasing at a rate of 4.54.5 square centimeters/minute. At what rate is the base of the triangle changing when the altitude is 11.511.5 centimeters and the area is 8686 square centimeters?
2. Gravel is being dumped from a conveyor belt at a rate of 30 cubic feet per minute. It forms a pile in the shape of a right circular cone whose base diameter and height are always equal. How fast is the height of the pile increasing when the pile is 19 feet high? Recall that the volume of a right circular cone with height h and radius of the base r is given by using the volume formula?
3. A rotating light is located 14 feet from a wall. The light completes one rotation every 4 seconds. Find the rate at which the light projected onto the wall is moving along the wall when the light's angle is 5 degrees from perpendicular to the wall.
4. At noon, ship A is 40 nautical miles due west of ship B. Ship A is sailing west at 20 knots and ship B is sailing north at 20 knots. How fast (in knots) is the distance between the ships changing at 5 PM? (Note: 1 knot is a speed of 1 nautical mile per hour.
5.A street light is at the top of a 12 ft tall pole. A woman 6 ft tall walks away from the pole with a speed of 5 ft/sec along a straight path. How fast is the tip of her shadow moving when she is 30 ft from the base of the pole?
6.An inverted pyramid is being filled with water at a constant
rate of 45 cubic centimeters per second. The pyramid, at the top,
has the shape of a square with sides of length 3 cm, and the height
is 5 cm.
Find the rate at which the water level is rising when the water
level is 3 cm.
7.A circle is inside a square.
The radius of the circle is decreasing at a rate of 2 meters per
day and the sides of the square are increasing at a rate of 2
meters per day.
When the radius is 3 meters, and the sides are 22 meters, then how
fast is the AREA outside the circle but inside the square
changing?
The rate of change of the area enclosed between the circle and the
square is ____________ square meters per day.
8. A police car is located 40 feet to the side of a straight
road.
A red car is driving along the road in the direction of the police
car and is 200 feet up the road from the location of the police
car. The police radar reads that the distance between the police
car and the red car is decreasing at a rate of 95 feet per second.
How fast is the red car actually traveling along the road?
The actual speed (along the road) of the red car is _________ feet
per second
In: Math
2. Needs Assessment for Coastal Tool Rental
Kathleen Marsh is a recent community college graduate who plans to open an equipment and tool rental store in the next few months. The store will target do-it-yourselfers who need gardening and home improvement implements that may be too expensive to purchase for a limited project.
Although this is her first real venture as an entrepreneur, Kathleen worked in a tool rental shop during high school and college. Kathleen’s store, Coastal Tool Rental, will be in a new shopping center. Kathleen chose the location because a sizable community of family homes is nearby and because no major competition is located in the area, which is about 15 miles from the nearest large town. She has arranged to rent 2500 square feet of space in the shopping center. She has located a wholesaler who can provide her with a start-up inventory of common garden and home improvement implements. The wholesaler can also serve as a supplier for new and replacement tools, equipment, and consumables.
Kathleen majored in small business management, but she also took a number of computer- related courses as electives—including some classes on programming and on using word processing, spreadsheet, and database applications. Kathleen plans to purchase a desktop computer for use in her small business venture, but her start-up money and time are limited.
Kathleen is considering the following four options to keep track of equipment rentals:
1. A manual system of file cards for each piece of equipment and each customer
2. A computer-based system she would build using a spreadsheet or database application
3. A computer-based option she would program herself
4. An off-the-shelf software package designed for equipment renta
She has asked for your help to determine the feasibility of each of these options. Complete the following:
# First, prepare a list of interview questions for Kathleen that would help you make a recommendation to her.
# After you have a list of potential questions to ask in an interview, compare your questions with those of three classmates or coworkers. Work with your group to create one merged list of questions for Kathleen. Organize the questions under several main categories.
# When you have completed the list of interview questions, your instructor will provide you with Kathleen’s responses to several questions from an interview with her. Based on her responses, complete the following:
Briefly describe the pros and cons of the four options Kathleen is considering.
Based on what you know of Kathleen’s situation, which of the four options would you recommend to her? Explain your reasoning.
In order to implement one of these options, Coastal Tools Rental would need data on each rental item and each customer. List the fields you think Coastal would need to include in either a record for each rental tool or a record for each customer.
In: Mechanical Engineering
Case Study: Chapter 22
Write an Explanation after each answer
Anthony Draecus is a 72-year-old male with type 2 diabetes mellitus, hypertension, and atherosclerosis. He lives with his oldest daughter and her family. His daughter has six children ranging in age from 7 to 18 years old. Mr. Draecus’s wife of 50 years died a few months ago. Until her death he lived with her in their own home about 100 miles away. The daughter insisted that he move in with her in spite of the fact that her husband felt that her father would be better off in his own home. Anthony’s daughter has brought him to the rural health clinic since the death of his wife, where he sees a family nurse practitioner. He tells the nurse practitioner that he is always tired and short of breath, his strength has decreased, and he is hungry all the time but when he eats it upsets his stomach. His weight has not changed recently. On physical examination, Mr. Draecus is 5 feet 10 inches tall, and he weighs 210 pounds. Today his blood pressure and pulse are 170/92 and 92 beats/min, respectively. He demonstrates atherosclerotic and hypertensive changes in the eye. His lungs are clear, and his bowel sounds are normal. He has dependent edema with strong peripheral pulses. His blood glucose level is high at 210 mg/dl. Cholesterol and triglyceride levels are also high. He takes oral hypoglycemia medication, a diuretic, and an antihypertensive medication. These medications have not been changed in more than 2 years. Until the death of his wife, his diabetes and hypertension were in better control.
1. The nurse practitioner would most likely consider which of the following as the cause of Mr. Draecus’s symptoms? A. Lack of control of his diabetes mellitus B. Age-related body changes C. Stress D. Lack of control of his hypertension.
2. With Selye’s general adaptation syndrome as a foundation. Mr. Draecus’s symptoms would characterize responses of the: A. Alarm reaction B. Stage of resistance C. Stage of exhaustion D. Stress triad
3. Which one of the following actions should the nurse practitioner consider first? A. Change the hypoglycemic medications to insulin. B. Help Mr. Draecus identify his stressors. C. Control his hypertension. D. Teach Mr. Draecus’s daughter how to manage her father’s diseases.
4. Which information from Mr. Draecus’s history is characteristic of the fight-or-flight reaction? A. Diabetes mellitus, hypertension, and atherosclerosis B. Chronic fatigue, blood pressure at 107/92, and pulse at 92 beats/min C. Decreased strength, dependent edema, and clear lungs D. Hunger, normal bowel sounds, and dependent edema.
In: Nursing